10 January 2013 20:59 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--First-quarter US refined vegetable and tallow glycerine contract spreads were assessed higher on the low end of the ranges as supply scenarios are tightening, sources said on Thursday.
Vegetable refined glycerine, fully certified as USP by US agencies, is assessed in the first quarter at 44.00-49.00 cents/lb ($970-1,080/tonne, €747-832/tonne) FOB midwest for small to medium volumes.
Tallow-based refined glycerine contracts, on the same certification basis, are assessed at 42.00-48.50 cents/lb, same basis location and volume.
Pharmaceutical-grade refined glycerine was assessed at 66.00-73.00 cents/lb FOB midwest amid strengthening fundamentals.
Players discussing tighter supply of refined product say there are pockets of increasing demand in certain applications ranging from personal care, polyurethanes (PU) to pet food applications.
Meanwhile, seasonal demand in the crop protection sector is said to be picking up, while demand in recreational vehicle (RV) fluid is slowing down as expected, sources said.
Demand in the construction automotive applications has softened, according to sources.
Several suppliers said a number of contracts were at exceptionally low start-points going into the first-quarter negotiations.
Refined glycerine suppliers no longer announce price changes, preferring to negotiate on an account-by-account basis.
US refined glycerine suppliers include Procter & Gamble, Vantage Oleochemical, Emery Oleochemical, Twin Rivers Technology and Peter Cremer North America.
Major importers include Wilmar, Acme-Hardesty and several trading groups.
($1 = €0.77)
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